Tax free cash and cgt

Dasa

Am I right in saying that the tax free cash lump sum you take from your pension will have no effect on a CGT bill, but the annual payable pension will?

Linton

The tax free lump sum is free of all taxes and should not be included in your tax return. Income from a pension or drawdown is subject to Income Tax in exactly the same way as your wages with the tax deducted by the pension company prior to payment based on a taxcode issued by HMRC. CGT does not apply to pensions.

BoGoF

Tax free lump sum - no

Annual pension - potentially. If income covered by income tax personal allowance then no. If liable to income tax yes (but depends on actual capital gain)

Dasa

Linton wrote: »

The tax free lump sum is free of all taxes and should not be included in your tax return. Income from a pension or drawdown is subject to Income Tax in exactly the same way as your wages with the tax deducted by the pension company prior to payment based on a taxcode issued by HMRC. CGT does not apply to pensions.

No but it is income and isn't that a factor when you have a CGT bill to pay?

Dasa

BoGoF wrote: »

Tax free lump sum - no

Annual pension - potentially. If income covered by income tax personal allowance then no. If liable to income tax yes (but depends on actual capital gain)

That's what I thought but wanted to double check. Thanks.